ssume that trout farming is a perfectly competitive industry that is in long-run equilibrium.

1. Draw and label side-by-side graphs for i. the market and ii. a representative trout farmer. On your graphs, show the equilibrium price and quantity in the market, labeled P_Mand Q_M, and the profit-maximizing quantity of trout produced by the representative farmer, labeled Q_F. (3 points)
2. For the representative trout farmer, is the demand perfectly elastic, perfectly inelastic, or unit elastic? Explain. (3 points)
3. Assume that trout is a normal good and incomes fall. On your graphs, show what will happen to the market price and quantity, labeled P* and Q*, and indicate the area of profit or loss earned by the representative trout farmer in the short run, shaded completely. (3 points)
4. Relative to your answer in the previous part, state what will happen to the market equilibrium price and quantity of trout in the long run. Explain. (3 points)